Samsung Electronics is projected to post solid earnings this quarter, despite the Galaxy Note 7 fiasco. Far from being a deathblow, the recall of Samsung’s premier phone will only have a limited impact on its bottom line, thanks to the company’s leading position in virtually every segment of the electronics industry. But that technological leadership comes at a very steep price.

Chart via The Investor

Samsung spent more than €12.53 billion ($13 billion) on R&D in the last fiscal year, data from the European Commission shows. The EU Industrial R&D Investment Scoreboard puts Samsung Electronics on the second place overall, behind only Volkswagen Group.

Samsung invests in research and development more than any other technology company. It’s trailed by Intel, Google’s parent company, Alphabet, and Microsoft, all with over €11 billion invested in the development of new technologies. Huawei, a world leader in telecom equipment, came in 8th with an estimate €8.35 billion spent on R&D in the fiscal year 2015-2016.

While Samsung Electronics trails Volkswagen, the R&D expenditures of the entire Samsung conglomerate (including, for instance, Samsung SDI) likely put it in the first place globally.

It should go without saying that R&D investment is hugely important to consumers. All the flashy features we take for granted today – Quad HD OLED screens, 10nm processors, VR, etc. – were made possible by the hundreds of billions that Samsung and its peers poured into R&D over the past decade.

On a side note, Samsung is just as serious about marketing as it is about R&D. In 2016, the company will spend $3.3 billion on ads alone. This combination of aggressive marketing and technological leadership explains why its rivals, Apple included, have such a hard time competing.

Bogdan Petrovan
Bogdan is the European Managing Editor of Android Authority. He loves tech, travel, and fantasy. He wishes he had more time for two of those things. Bogdan's phone is a Nexus 6P.
  • Phillip

    Every time I hear about Samsungs demise from haters, I just laugh . Samsung is not going anywhere soon but up . Now where’s my s8 !!

    • Scr-U-gle

      It currently on fire.

      Samboom, burnt through €13bn in the last fiscal year, and still can’t work out why their phones grounded planes and keep catching fire.

      They would have been better off spending €13.00 last year.

      Let’s hope the keep spending double their R&D on marketing to sheep.

      • Phillip

        Why you sound jealous my friend haha. Hating is a disease with no cure. You no the saying you have to spend money to make money looks like there 4th quarter reports will put them back in the black. That lil note 7 thing has made them a better company . I can’t wait for the s8 and note 8 .Oh and judging from all the Samsung products I saw leaving out the door Christmas week most have forgotten all about that Lil mishap . Only the haters still bring it up haven’t you noticed

        • Scr-U-gle

          Sorry, can you try English please, I don’t speak bollocks.

      • Commentator

        So who do you rate as a mobile tech company pushing the limits on R&D?

        • Phillip

          Sure in hell isn’t that ugly ass pixel bezel phone haha .

        • Scr-U-gle

          Well I know for sure it isn’t Samboom. I suggest you try a Bing search for ‘Samboom 100 page document on how to copy the iPhone’

          • Commentator

            So who then? It’s obvious now you don’t think Samboom. Who then?

        • Phillip

          Don’t waste your time . He’s just our resident Sammy hating troll that likes attention

    • Commentator

      Agree

  • FilmActorsGuild

    It’s, “know” not, “no”.

  • Agreed. Best displays, processors,cameras are outputs of those investments.

    • Scr-U-gle

      Best displays (copied from Sony)

      Processors (off the shelf arm processors, that when they produce the same design as TSCM, are slower than the one produced by TSCM)

      Cameras (Sony units that had to come back to the resolution of the iPhone to catch up).

      What did they use that €14bn on?

      • Marius Tomas

        display copied from Sony? they make their own displays. Samsung has been known for best displays for years…. I didn’t heard that about Sony. and camera sure they using Sony unit’s but Also they have their onw produced units which are equal to Sonny quality. I’d u didn’t know they have to use Sony and their own camera units because they selling way too many phones. I guess u sitting in your Sony my friend and getting jealous why sony can’t have those nice features as Samsung phone. Sonny phones are Good sure but it’s matter of taste, I personally never liked that brick looking design

        • Phillip

          Oh yes he’s jealous for sure he’ll show up on every Samsung post with the same useless comments, pass on this idiot he’s not worth your time

        • Scr-U-gle

          Never heard of Sony displays? Well you must be an expert in technology, because Sony now suddenly have been behind a Korean knock-off merchant.

          Stopped reading after such a stupid comment as Sony are not regarded as the best with displays. That’s why grading monitors are made by Sony and poorly balanaced over saturated screens are Sambooms badge of honour.

          I suggest you maybe try Bing searching ‘Sony produces worlds first…’ and add things like ‘oled screen’ to the end of that search.

      • Samsug’s super AMOLED technology is entirely different from SONY displays. Regarding processors your just talking about only A9 chip. Now qualcomm joined samsung to manufacture snapdragon chipsets which resulted in 821 beast (Thermally efficient than predecessors). HTC 10, Oneplus 3T uses samsung camera sensors.

        • Scr-U-gle

          Amoled is directly from Sony. Again, I suggest you do a Bing search for ‘Sony first oled screen’

        • Scr-U-gle

          Amoled is technology developed by Stanford Research Institute and Sony, Sony had to sue Samboom, and Samboom pay Sony now.

          It’s like you think Samboom and its leaders have no long standing criminal record, from the CEO bribing his child into a place for disavataged children, to paying off politicians and murdering their own employees to slandering other companies.

  • Marius Tomas

    strange not seeing Apple In R&D…but I guess since they only buying part’s that’s normal…. and where Samsung making so many parts of themselves so Many hates?

    • Brad Fortin

      They’re #11 on the list, with ~€7.4 billion in R&D, which seems like a lot when you think of how few products it makes compared to a company like Samsung. It’s like they have more focus with their R&D budget.

  • mark

    I’m not sure why Volkswagen aren’t counted as a technology company in order to make Samsung number one (sure, we might usually think of them as a car company, but that’s like saying people think of Samsung as being a phone company). Cars are still an example of technology (and they also use modern technology to create).

    Instead we might say that Samsung are the number one out of consumer electronics companies.

  • Goblin Shark

    Samsung is a well managed company in many respects. I don’t buy their products because of a bad experience with the Galaxy S4, but I stopped being a hater a while back.